1. KH's evolutionto Holding Company 2010. 04. 08. Fantastic 4 Real coreSmart bear Record history Hero from eastSoft spreadCarve river

3. We took the view of the FI responsible for Kumho Industrial, Asiana Airlines, and Korex and examined each company to figure out a way for the FI to receive their investments with a 9% return.

4. Our overall strategy was to liquidate the construction and bus part of Kumho and use that money to reduce the liabilities of Asiana. With the financial help from Kumho, Asiana can resume operations in the black and by developing into an LCC, can capture additional market share and provide cash for the Kumho, which will become a holding company in the future to either invest or reduce its own liability.

5. Korex is financially healthy and therefore does not need financial help, but with Asiana positioning to become an LCC, can work in liaison with Asiana to focus on air express distribution, an area with high profit margins.

7. agenda Current Situation of KH Goal Setting Corporate Strategies Final Overview

13. By this, we can infer that 9% minimum rate of return that FI require. Increase Sales for the rate of 9% Corporate Goals Kumho Industrial Asiana Airlines Korex (2014E) ,713,161M (2014E) ,980,939M (2014E) ,818,297M

14. agenda Current Situation of KH Goal Setting Corporate Strategies Final Overview

15. Strategies Overview From the FI’s point of view, the goal should be to maximize the return of investment by revitalizing the business. Blueprint of Strategy Current Situation Short term Strategy (~2014) Long term Strategy (2014~) Kumho Industrial Cash flow : 1,500 B. Asiana Airlines Cash flow Synergy Korex

19. After selling off assets, KH becomes holding company.

20. FI would prefer holding company for ease of transaction.

21. Asiana and Korex provides much cash for investment.

22. FI can use their human network to easily staff a holding company ()human resource intensive Valuation in appendix

24. Future expectation

27. Received “Airline of the Year” by ATW for the first time for a domesticairline. 2006 2007 2008 2009 Unit : 100Mil KRW Asiana airlines is still attractive to keep and provides stable revenue and cash.

28. Asiana Airlines - Why LCC? The LCC market itself is increasing and has a higher operating margin than conventional airlines which is why ASIANA should expand into the LCC business Market-size increase Higher Operating Margin Network Legacy Carriers World Europe No.1 Low Cost Carriers Ryan air 21% 70% 95% USA No.1 30% 5% Southwest 10% Low Cost Carriers 2001 2008 Korea Asia No.1 Air Asia 13% 72% 100% SouthAmerica No.1 28% Gol Airlines 17% * IATA 2008 2001 2008 Market Share of LCCs in Korea 1 Air Busan28% 2 Jin Air 26% Jeju Air 19% 3 (ASIANA)

31. Less on-ground time

36. Growth rate in 2010 is expected to 11.8% .

39. National power + business capacity in Asia region.

40. Land+ Harbor + Air route possible -> a short-term step in prep. for long-term goal

43. agenda Current Situation of KH Goal Setting Corporate Strategies Final Overview

47. THANK YOU FOR LISTENING

49. (사례) 속리산 고속(버스 90대, 매출 160억)을 2년 전에 300억 원에 샀다

50. (적용)금호고속 (매출2000억 원, 점유율 40%) 기업규모 13배

52. (사례) 쌍용건설 도급순위 13위 매출 1조 8천(2009년), 1조원 가격 불렀다. 동국제강이 사려고 했는데 당시 기사 보면 가격이 reasonable했다는 기관의 평가.

53. (적용) 금호산업 현재 14위, 매출 2조 1천억(2008년)

54. 금호건설 1조원 예상시간 관계상 DCF 나 EV/EBITDA 는 볼 수 없었던 점 양해해 주시기 바랍니다.